The appropriateness of inflation targeting in South Africa is examined. South Africa has adopted flexible inflation targeting, wherein considerations for other macroeconomic variables are prioritized. There is evidence of growing concern regarding South Africa’s monetary policy framework., emerging primarily from the trade union movement and the communist party. The concerns are borne out of the developmental challenges that are still facing South Africa, ranging from high unemployment, high levels of poverty and inequality, and low economic growth. In attempt to understand these concerns, the following key economic variables GDP, Manufacturing Data, Exchange Rate, and Repo Rate were investigated using both Eviews and Stat tool. To eliminate the impact of the recent global recession, the data that has been analyzed is up to 2008. The research compares two periods, namely; the pre inflation targeting period (1990 – 1999) and post inflation targeting period (2000 – 2008). The study has found that despite unemployment, inequality and economic growth having being sluggish over the years, these factors are not as a result of inflation targeting. Evidence indicates that inflation has been reduced and stabilized since the adoption of inflation targeting. This research argues that this methodology is important for South Africa’s economic development, as evident by increased output. This research concludes that the implementation of inflation targeting is appropriate for South Africa. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

博士(経済学) / Doctor of Economics / 同志社大学 / Doshisha University

The primary objective of this thesis is to analyse the relationship between money and the macro-economy in Sri Lanka between 1977 and 1985, in order to identify the paths through which monetary policy impulses are transmitted over this period. In doing so, - we also hope to highlight the use of macro-simulation as a tool for the analysis of the monetary transmission mechanism and to emphasise the importance of formulating monetary policy within an explicit monetary control framework. This is especially important in Sri Lanka since monetary policy has been a key instrument of demand management since 1977 and historically there has been a noticeable absence of an explicit monetary control framework. Empirical research on the monetary transmission mechanism has been very limited as far as developing countries are concerned. An exception here is the SEACEN (1981) study which simulates the effects of monetary shocks on a number of South East Asian countries, including Sri Lanka, using a flexible monetarist approach. Our research is based upon a revision of the specification of this model for Sri Lanka and a more comprehensive disaggregation of the monetary transmission channels. Our empirical model produces statistical results which are generally acceptable and conform to a Priori expectations. This model is then simulated dynamically, both, to validate the equations in the context of a complete model and to quantify the impact of alternative policy scenarios relating to the monetary transmission mechanism in Sri Lanka. We believe that our results will help to shed light on the nature of the monetary transmission mechanism in developing countries as well as provide the basis for an on-going analysis of monetary management in Sri Lanka. / Central Bank of Sri Lanka

La Fièvre de la Vallée du Rift (VFVR) est une arbovirose zoonotique affectant principalement les ruminants et les humains. Son éco-épidémiologie complexe implique de nombreuses espèces de vecteurs, d'hôtes et de voies de transmission. Ainsi, différents mécanismes de transmission et d'émergence sont impliqués dans la circulation du virus de la FVR (VFVR) et ceux-ci dans des écosystèmes contrastés d'Afrique, de la Péninsule Arabique et des îles du sud-ouest de l'Océan Indien, dont l'île de Madagascar.Par sa superficie, sa grande diversité éco-climatique et sa faune et flore endémique, Madagascar est considérée comme une île continent. On y retrouve, en effet, des écosystèmes variés plus ou moins favorables aux moustiques : semi-arides dans le sud-ouest, humides et froids sur les hautes terres centrales, per-humide dans l'est et humides et chaud dans le nord-ouest. Madagascar a été affectée par deux épidémies de FVR en 1990-91 puis 2008-09. Une étude menée lors de la dernière épidémie a montré que le virus avait largement diffusé dans l'île de façon hétérogène.Compte tenu de la complexité des mécanismes de transmission de la FVR et de la diversité des écosystèmes de Madagascar, nous avons supposé que cette hétérogénéité spatiale était due à des mécanismes de transmission et d'émergence qui variaient en fonction des écosystèmes de l'île. Ainsi, le premier objectif de ce travail de thèse étaient de déterminer les mécanismes et les dynamiques de transmission de la FVR inhérents aux différents écosystèmes de Madagascar. Le second objectif a été d'identifier les mécanismes d'émergence de la FVR à Madagascar et de déterminer s'il sera possible, et nécessaire, de prédire cette émergence à l'échelle des écosystèmes.Dans le cadre de ce travail de thèse deux enquêtes sérologiques nationales, l'une bovine (2008) et l'autre humaine (2011-13) ont, premièrement, été analysées par un modèle linéaire mixte généralisé afin d'identifier les facteurs environnementaux et comportementaux favorables à la circulation du virus chez les bovins et les humains. Deuxièmement, deux enquêtes sérologiques bovines, l'une réalisée en 2008 et l'autre en 2014, ont été analysées pour reconstruire la dynamique de transmission de la FVR dans les différents écosystèmes de l'île. Cette reconstruction a été réalisée à partir de données de séroprévalence et d'âge inclues dans un modèle Bayésien hiérarchique pour estimer la force d'infection annuelle de 1992 à 2014. Enfin, afin de faire le lien biologique avec les résultats des travaux menés à une échelle nationale et de décrire les mécanismes de transmission à une échelle fine, des enquêtes longitudinales entomologiques et sérologiques ont été réalisées entre 2015 et 2016 dans un écosystème à risque. Et ceci, afin de décrire la transmission saisonnière du VFVR chez les ruminants associée à la dynamique de transmission des vecteurs potentiels.Nos résultats ont montré que la région du nord-ouest de l'île est une région à risque de transmission. D'une part, elle est constituée d'environnements associant une forte densité de bovins à des zones humides, inondables et irriguées, favorables aux espèces d'Anopheles et Culex. D'autre part, le VFVR semble avoir circulé de façon relativement intense lors de la période inter-épizootique de 1992 à 2007, puis sa transmission a soudainement augmenté en 2007-2008, ce qui est concomitant avec l'apparition des foyers de FVR en 2008. Pour finir, 6 ans après l'épidémie de FVR à Madagascar, le virus semble toujours circuler à bas bruit dans la région. Cette circulation étant probablement due à une transmission vectorielle favorisée par l'abondance de vecteurs potentiels dans la région.Les résultats de ces différents travaux nous ont permis de présenter des hypothèses de transmission dans les différents écosystèmes de l'île et ainsi de proposer des stratégies de surveillance, de prévention et de lutte contre la FVR adaptées au contexte de Madagascar. / Rift Valley fever (RVF) is a zoonotic vector-borne disease affecting ruminants and humans. Its complex eco-epidemiology involves several species of vectors, hosts and transmission routes. These particularities allowed the circulation of RVF virus (RVFV) in a variety of ecosystems involving different transmission and emergence mechanisms. Indeed, the RVFV has affected contrasted eco-regions in Africa, Arabian Peninsula and South-West Indian Ocean islands, including Madagascar.Madagascar is considered as a continent island due to its ecological diversity and its endemicity level of the flora and the fauna. In particular, the variation of the Malagasy ecosystems (semi-arid in the south, humid and cold in the highlands, humid and warm in the north-west and per-humid in the east) has an impact in their presence and /or the relative abundance of some mosquito species. Madagascar was heavily affected by RVF in 1990-91 and 2008-2009, with evidence of a large and heterogeneous spread of the disease.Thus considering the diversity of RVF eco-epidemiological cycles and the variety of Malagasy ecosystems, we hypothesized that, in Madagascar, the mechanisms of transmission would be different according to these ecosystems. Therefore, the first objective of this thesis was to understand the mechanisms and the dynamics of transmission of RVFV in the different ecosystems. The second objective was to determine the mechanisms of emergence of RVFV and if it would be necessary and possible to predict the emergence of RVFV outbreaks according to the ecosystems.Firstly, we analyzed both cattle and human serological data performed at the national level using generalized linear mixed models to identify the environmental and behavioral factors associated with RVF transmission in both cattle and human. Secondly, we reconstructed the dynamic of transmission of RVF in the different Malagasy ecosystems. Seroprevalence data of cattle of known age were fitted using Bayesian hierarchical models to estimate the annual force of infection from 1992 to 2014. Thirdly, to understand the biological process link to the mechanisms of transmission at the national scale, we investigated the fine scale mechanisms of transmission of RVFV in pilot area of an at-risk region. We, thus, performed both longitudinal entomological and serological surveys between 2015 and 2016, in order to describe the seasonal transmission of RVFV among ruminants and its association with the dynamics of RVFV potential vectors.Our results showed that the northwestern part of Madagascar is an at-risk region for RVFV transmission. On one hand, it is characterized by high cattle densities associated with humid, floodplain and irrigated areas suitable for RVFV potential vector like Anopheles and Culex species. On the other hand, RVFV had probably circulated intensively in the region during the 1992-2007 inter-epizootic period and its transmission increased suddenly in 2007-08, almost concomitantly with the first outbreaks recorded in 2008. Finally, RVFV was still circulated in the northwestern region at low level, 6 years after the last epidemic. This circulation is likely due to vectorial transmission favoring by the abundance of several potential vectors of RVFV in this pilot region.Finally, our better understanding of the mechanisms of transmission of RVFV throughout Madagascar allowed us to propose hypothesis of transmission in different ecosystems of Madagascar and consequently refine strategies for RVF surveillance and prevention.

The purpose of this thesis is to empirically explore the characteristics of the monetary transmission mechanism, with a particular emphasis on the role of banks, in Turkey. By looking at the banking sector at the micro level and exploiting dynamic panel data modeling approaches, the heterogeneity in banks&rsquo / response in terms of their lending and risk-taking to changes in policy interest rates is analyzed. The first essay is an empirical analysis of the bank lending channel of monetary transmission. In this regard, the lending behavior of banks operating over the period 1988-2009 is examined. Given the changes in the policy stance and developments in the financial system following the 2000-01 crisis, the analysis is further conducted for the two sub-periods: 1988-2001 and 2002 2009, to examine whether there is a change in the functioning of the credit channel. Empirical evidence suggests cross sectional heterogeneity in banks&rsquo / response to monetary policy changes during 1988-2009. Regarding the results of the pre-crisis and post-crisis periods, it is found that an operative bank lending channel existed in 1988-2001, however its impact became much stronger thereafter. Furthermore, there are significant differences in the distributional effects due to bank specific characteristics in the impact of monetary policy on credit supply between the two sub-periods. The second essay investigates the existence of risk-taking channel of monetary policy by using quarterly data over the period 2002-2012. Four alternative risk measures are used in the analysis / three accounting-based risk indicators and a market-based indicator. Our findings show that low levels of interest rates have a positive impact of banks&rsquo / risk-taking behavior for all risk measures. In terms of bank specific characteristics, our results imply that large, liquid and well-capitalized banks are less prone to risk-taking.

The primary objective of this thesis is to analyse the relationship between money and the macro-economy in Sri Lanka between 1977 and 1985, in order to identify the paths through which monetary policy impulses are transmitted over this period. In doing so, - we also hope to highlight the use of macro-simulation as a tool for the analysis of the monetary transmission mechanism and to emphasise the importance of formulating monetary policy within an explicit monetary control framework. This is especially important in Sri Lanka since monetary policy has been a key instrument of demand management since 1977 and historically there has been a noticeable absence of an explicit monetary control framework. Empirical research on the monetary transmission mechanism has been very limited as far as developing countries are concerned. An exception here is the SEACEN (1981) study which simulates the effects of monetary shocks on a number of South East Asian countries, including Sri Lanka, using a flexible monetarist approach. Our research is based upon a revision of the specification of this model for Sri Lanka and a more comprehensive disaggregation of the monetary transmission channels. Our empirical model produces statistical results which are generally acceptable and conform to a Priori expectations. This model is then simulated dynamically, both, to validate the equations in the context of a complete model and to quantify the impact of alternative policy scenarios relating to the monetary transmission mechanism in Sri Lanka. We believe that our results will help to shed light on the nature of the monetary transmission mechanism in developing countries as well as provide the basis for an on-going analysis of monetary management in Sri Lanka.

Bakgrund: I november 2014 beslutade Riksbanken att ta steget mot en nollränta och i februari 2015 gick Riksbanken ut med ytterligare en sänkning till -0,10 procent. På så vis fick Sverige för första gången en negativ reporänta. Enligt makroekonomisk teori ska en sänkning av reporäntan stimulera konsumtion och investeringar i ekonomin. Huruvida reporäntan och dess räntesänkningar skapar förutsättningar för företag att investera är ett aktuellt och viktigt forskningsområde. Forskningen i ämnet är tunn på den svenska marknaden och således är forskningsbidraget från denna studie av betydelse.Syfte: Syftet med studien är att undersöka och analysera hur förändringar i reporänta, makro-ekonomiska faktorer samt finansiella indikatorer påverkar investeringar hos svenska företag.Genomförande: Studien bygger på en kvantitativ metod. En Vector Autoregressive model har skapats för att redogöra hur reporäntan, de makroekonomiska faktorerna och de finansiella indikatorerna påverkar företagens investeringar. För att möjliggöra en analys av dessa effekter har impulse response functions skattats i modellen. På så vis undersöks det hur en isolerad enhetsökning i de valda variablerna påverkar företagens investeringar över flera tidsperioder. För att genomföra en mer omfattande analys skattas tre modeller där den första tar hänsyn till både makroekonomiska faktorer och finansiella indikatorer. Den andra modellen exkluderar de finansiella indikatorerna och den tredje modellen speglar reporäntans utveckling i två olika tidsperioder.Resultat: Företagens investeringar påverkas av flertalet faktorer. En enhetsökning av utlåningsräntan, växelkursen och företagens inflationsförväntningar uppvisar ett signifikant negativt samband. En enhetsökning av BNP-tillväxten visar däremot ett signifikant positivt samband. Reporäntan visar ingen direkt effekt på investeringar i de första två modellerna. Däremot uppvisar reporäntan skillnader i den tredje modellen, där ett negativt samband förekommer i den första av de två observerade tidsperioderna. / Background: The central bank of Sweden decided in November 2014 to set the repo rate close to zero. Further they decided to lower the repo rate to -0,10 percent in February 2015. In regard to this, Sweden had a negative repo rate for the first time. According to macroeconomic theory a decrease in the repo rate is performed to stimulate an economy’s investments and consumptions. Whether or not a decrease in interest rates gives greater incentives for firms to invest is a topical subject and an important field of research. In addition to this, the existing research on the Swedish market is insufficient within this field, which gives us further motives to conduct this study.Aim: The purpose of this study is to examine and analyse how changes in the repo rate, macroeconomic factors and financial indicators affects investments of Swedish firms.Completion: The study is conducted with a quantitative approach. A Vector Autoregressive model is created in order to examine the impact of changes in the repo rate, the macroeconomic factors and the financial indicators on firms’ investments. Impulse response functions are estimated to allow a further analysis of these effects. Hence, it is conceivable to examine how one isolated unit-increase in a specific variable affects firms’ investment through several time periods. Furthermore, we estimate three models, one which includes both macroeconomic variables and financial indicators and another which excludes the financial indicators. The last model reflects the repo rate’s impact on investments in two separate time periods.Result: Investments of firms are affected by numerous of factors. One unit-increase of the lending rate, the exchange rate and firms’ expectations of inflation exhibit a negative relation to investments. Furthermore, one unit-increase in GDP-growth tends to increase investments. However, the repo rate has no impact on investments in the first two models. In spite of this, evidence from the third model indicates that the repo rate has a negative impact on investments during the first period.

Macroeconomic stability is one of the most important national objectives in any country. However, economies are often subjected to a number of shocks (internal and external), which can be destabilising, produce volatility and make it difficult to achieve and maintain economic stability. Consequently, various policies are used to help deal with the various shocks that may affect the economy. Of all the available policies, monetary policy appears to have been ever more at the centre of macroeconomic policymaking. Meanwhile, for monetary policy to be effective, there is a need for a better understanding of the transmission mechanism, i.e., the process through which monetary policy decisions are transmitted into changes in real output and inflation. Whereas extensive research on the transmission mechanism has been conducted in developed countries, such work in developing countries, especially in Africa is lacking. This could be due to the fact that it was not long time ago, around the 1990s that countries in Africa started adopting the more modem central bank operations in a market-based economic and financial system characterised by indirect monetary policy. Such operations require an understanding of the transmission mechanism. Lack of empirical analysis of the monetary transmission mechanism in Botswana and developing countries of Africa in general, is the main motivating factor behind this thesis. The main objective of this thesis is, therefore, to estimate the transmission mechanism of monetary policy in Botswana. Three different, but complementary techniques (the Narrative Approach, Vector Autoregression (VAR) analysis and the Structural Approach involving the estimation of a small structural model for Botswana economy) are used. Results from these methods tell a consistent story and indicate that monetary policy in Botswana affects real output and inflation through the interest rate channel, while the exchange rate channel is not operational. The credit channel is also active but not strong. The structural approach also indicates that devaluation is contractionary in Botswana, but more research is necessary before firmer conclusions could be made.

This thesis analyses the chief relations inside the transmission mechanism of the monetary policy of the U.S. Federal Reserve System during the period from 1955 to 2007. The theoretical part of the thesis describes the principles of the history of Federal Reserve and his monetary policy, the development of Fed's monetary policy and its transmission mechanism, the lags in the monetary policy and various theories which deal with try to explain the monetary policy relations. In the analytical part I focus on answering the most laid questions whether, how much and for how long do the nominal interest rates and monetary aggregates affect the real variables (mainly the real domestic product) of the United States. Next I focus on investigating the monetarist assumption of money neutrality in the long run. I also introduce Granger causality and Impulse and Responses investigations into proposed VAR model.

This master thesis deals with current monetary policy in the world. The monetary policy belongs to the basic components of the economy and the economic policy. In today`s world economy, still recovering from the recent financial and economic crisis, many people look up to the monetary policy as a possible remedy for standstill economy. At first, this thesis presents standard monetary policy. Then, the analysis of the current monetary policy in the centres of the world economy, which means the USA, Europe and Japan, is carried out. From the analysis the main problems of current monetary policy emerge and then new tools and solutions implemented by various central banks for the purpose of solving these problems are analysed. At the end other possibilities of the monetary policy are presented in theory.